TikTok signs first settlement agreement with U.S. state

TikTok and its Chinese parent company ByteDance have reached a settlement agreement with the state of Alabama over a child safety case. The companies were accused of creating a platform that causes addiction in minors.

In addition, the social network is accused of misleading users about its security, according to the office of the attorney General of Alabama. Under the agreement, the state will receive at least $100 million.

Funds must be received within 45 days after the conclusion of the agreement. If certain conditions are met, the amount of payment may increase to $300 million. The Alabama authorities did not specify additional claims, which will depend on the amount of compensation.

This is TikTok's first settlement agreement with a separate U.S. state over such allegations. At the same time, the company continues to face similar lawsuits and claims in other US states.

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